The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1887-11-09

of the loan it is chargeable.
With regard to the form and denOmina-
ton of the bonds, it would appear that
when Mr.. Armstrong left this country for
London in August, 1856, he was under the
that they were to be in pounds
sterling, as is usual when foreign countries
raise loans in England, whilst it seems
equally certain that the Premier, Mr.. Glib
son, and his colleagues understood that
they were to be in United States gold coin
IN accordance with the Act. MIR. Arm
strong in his correspondence with me COM
PLAINS that he received no detailed in
structions from the late Minister of FL
nance or from the premier with regard to
negotiating the loan, and that all such de-
tails were left to his own judgment, and he
was therefore often obliged to act on his
own responsibility. 1t must be admitted
that there is no record of any such instruc-
tons having been given to him, and when
we call to mind the circumstances con-
nected with the administration of the Gov
eminent at that time, it is hardly surpriS-
ing that no detailed instructions were
given to its financial agent on such a mat
Mr. Armstrong; hands. This gentleman
came here as the representative of a Lon
don syndicate, and inGimated that 1t was
prepared to float loan IN England for this
Government. The Cabinet invested him
(the representative OF that syndicate) with
full powers to negotiate such loan, but
with no written instructions as to the
terms and other important details. In
justice to Mr.. Armstrong it must be adj
mitted that this course placed him in a
somewhat difficult position.
The following is a copy of the power
given to Mr.. Armstrong by the late Min
lister of Finance to negotiate the loan:
ITO whom it may concern. Be it known
that by authority of His Majesty the King
in Cabinet Council, have given power to
H r. Armstrong, ESQ.,, of London, Eng
land, to negotiate on the part of the Ba-
waiian Government, and in conformity
with the Act authorizing a loan approved
September 1st, A. D. 1886, and the Act
amendatOry thereof, approved October
18th, A. D. 1886, the sale of the coupon
bonds of the Hawaiian Government, and to
do and perform all acts which may be
necessary in the premises, with the author
ity to delegate this power.
Witness my hand and the seal of my
Department, this 23d day OF October, A.
D. 1886.
"(Signedl PAUL P. KANoA,
His Hawaiian Majesty's Minister of
Finance"
Mr.. G. w. Macfarlane received pre-
cisely similar power dated the same day.
1t will be observed that Mr. Armstrong had
power to negotiate the loan in conformity
with the Acts. This, in the absence of any
written instructions, threw a very grave
responsibility on that gentleman. Mr.. G.
w. Macfarlane only arrived in London
after the loan was flOated and the scrip
issued.
When Mr. Gibson learned from Mr.
Armstrong that the bonds were to be in
pounds sterling, he objected, but on the
latter explaining that it was customary to
so make them in all cases when foreign
loans were placed in England, notwith-
standing that the statutes authorizing
them referred only to the coinage of the
telling him at the same time to go on and
raise another 100000. This was, however.
DELAYED, first by the news of the change of
government of July LIST, and then stopped
by cable message from this Department.
Thus it will be seen that the issue of bonds
in pounds sterling has been done with the
concurrence of the duly authorized agent
of the Government, and has been assented
to by the late Premier.
The first set of forms of bonds, which
arrived in July last contained an unquali-
fled statement that 92OO, 900 sterling was
1.-The equivalent of 81 100000 of gold coin of
the United States of the present standard, "
which was one that no Hawaiian Minister
of Finance could allow over his signature.
This alone was sufficient to condemn that
form of bonds, and as there appeared to
be other Irregularities in the wording of
them, l wrote to Mr.. Armstrong i'll the
same month (July) stating that as that
form of bonds could not be signed and new
ones would have to be printed, hoped he
might be able to arrange for bonds in L. S.
gold to the amount of that coin which this
Government had received in San Francisco,
with the legitimate charges added, leaving
the Els, 900 matter to be settled afterwards.
He replied that this was impossible and
that no change III the denomination of the
bonds could be made without breaking
faith with the bond-holders, or rather with
the holders of certificates which engaged
to furnish bonds in pounds sterling.
Mr.. Armstrong has since arranged to
have a new set of bonds printed with the
most Objectionable clause about the equiva-
lent of pounds sterling in United States
gold coin omitted. Mr. G. w Macfarlane
has brought this new set of bonds with him,
and the bond holders expect them to be
signed by the present Minister of Finance
as successor to P. Kanoa and by the Regis
trar of Public Accounts, and to be re-
turned so as to arrive in London by the
31st of December.